Xterprise Makes Multimillion RFID Tag Purchase

RFID solutions provider Xterprise today released the latest update on the RFID deployment it is managing for pallet pool iGPS, the all-plastic pallet pool startup. Xterprise has placed an order for 4.5 million RFID tags, which the company says represents one of the industry's single largest tag orders in recent history.

February 7, 2007—RFID solutions provider Xterprise today released the latest update on the RFID deployment it is managing for Intelligent Global Pooling Systems (iGPS), the all-plastic pallet pool startup. Xterprise has placed an order for 4.5 million RFID tags, which the company says represents one of the industry's bigger tag orders in recent history. "This is one of the largest single RFID tag orders that the industry has seen in three years," said Xterprise founder and CEO Dean Frew.

There were three suppliers chosen for the tags: Alien, Avery Dennison, and Zebra. "The RFID tag is an integral part of iGPS's data capture system," said Frew. "Selecting the right tag ensures accuracy and integrity of the inventory management system, which ultimately determines the resulting business value."

The new order brings Xterprise's projected 2007 RFID tag shipments to ten million. (As a benchmark, aggregate Gen2 tag sales last year numbered in the low hundred millions.) Frew said that tag purchases are accelerating among its clients. This is notable coming from Xterprise, a company whose participation in the retail, asset management, supply chain execution, and cold chain markets means it sees a wide cross-section of RFID adoption.

Xterprise announced its contract with iGPS in September of last year (see Xterprise Provides RFID for Plastic Pallet Pool). In pallet pooling systems like iGPS', companies lease pallets (or other types of shipping containers) instead of buying them. Since the pallet provider handles management and maintenance of the pallet fleet, customers are relieved of both the cost and administrative headaches of coordinating and purchasing the pallets. In addition to using only plastic for its inventory of pallets, which according to the company is cheaper and more sanitary than the traditionally used wood, leveraging RFID to provide enhanced track-and-trace has also been a key part of iGPS' strategy. The company was founded by Bob Moore, one-time CEO of multibillion dollar pallet provider CHEP, which itself has begun adopting RFID (see CHEP Begins RFID Deployment for Its Container Fleet).